Module 1: NEST oracle1. NEST oracle quote mechanism
The NEST oracle solves the problem of price on-chain through a decentralized incentive solution, that is, the price predictor.
The core of Nest Oracle: Quote mining (incentive), verification cycle, price chain, beta coefficient.
Take the price of ETH to USDT as an example:
1) Any participant can pass the price that who recognized to the quotation contract, such as 1 ETH = 200 USDT, and then enter these two assets into the quotation contract according to the price ratio, The general scale will be 10-100 ETH and it will charge 1% of the ETH as a handling fee for mining and get NEST incentives.
2) After entering the asset, wait for T0 time (currently 25 blocks, around 5 minutes). During this period, anyone can buy ETH or USDT at the price of the quoter. If there is no transaction in T0, the quote It is hired by the system; if the transaction is completed completely, the price is invalid, and part of the transaction is partially invalid. After this time, the assets can be recovered.
3) If someone is willing to make a deal with the bidder, then at the same time when he deals, he must also report a new price according to the above standard, so that p1, p2 ... price chain is formed after the initial quote P0.
4) The quote size of the trader is beta times the scale of his transaction, where beta> 1 (currently beta=2), which means that the price chain will eventually terminate (downtime) with the expansion of the scale, and the perpetrator’s The cost increases geometrically, thus countering the aggressive behavior.
5) NEST value: mining fees and the use of oracles need to pay a certain ETH fee, unified into the system revenue contract, and distributed to all circulating NEST.
Price deviation defense mechanism: If this quote deviates more than 10% from the last valid quote, the scale of this quote is 10 ETH * 10 (the scale is expanded by 10 times)
2. NEST quote verification mechanism
Anyone can become a verifier, verify the price of the quoted miner's quotation, if there is a deviation between a single quotation and the market price, and there is a certain arbitrage space, then the verifier can take a single arbitrage. The specific verification rules are as follows:
1) The minimum number of validator orders is X * 10 ETH, where X must be an integer;
2) The validator needs to submit a new quotation at the same time as the order is submitted. The new quotation size requirement is the beta multiple of the size of the order, the current beta=2;(Note: If the verifier’s new offer deviates from the previous effective offer by more than 10%, then the new offer size will be x 10 times)
3) The new quotation initiated by the verifier has no quotation fee and does not participate in NEST mining;
4) The validator needs to pay a transaction fee of 0.1% of the amount of ETH paid while paying the bill;
3. How does NEST miners offer mining?
Assume that the price of ETH / USDT is 1 ETH = 200 USDT;
Step 1: The quote miner needs to deploy a NEST oracle quote contract and transfer 10 ETH and 2000 USDT assets to the quote contract at the same time;
(Notes: 10 ETH is the minimum quote size)
Step 2: When the quotation contract is successfully deployed, it will take effect on the chain immediately. Any third-party verifier can transfer 10 ETH for 2000 USDT, or 2000 USDT for 10 ETH; if it is deal, it means that there is arbitrage between this single quote and the market price; Due to it can represent the market. The fair price quotation will not be traded under normal circumstances, the transaction needs to pay 0.1% transaction fee, and the trader needs to initiate a new quotation out, and the quotation size x beta times, the current beta = 2;
Step 3: If the quotation is not completed within 25 Ethereum block time (about 5 minutes), then the quotation data of this order will be used by the NEST system to participate in the formation of the oracle price; On the contrary, if the quotation is completely executed by the verifier, it means that the quotation data cannot represent the fair market price, and will be discarded by the system, and will not participate in the formation of the oracle price. Regardless of whether the transaction is completed or not, after 5 minutes of life cycle, the quoted miner can retrieve the quoted asset from the contract, and also get the NEST mining reward for the next quote. The above is the quotation process of NEST predictor.
NEST mining cost: 1% of the Quoted ETH scale + Gas fee
NEST Token mining release rules:
1) The total amount of NEST is 10 billion.
2) The starting block of the mining pool output is the 6236588 block of Ethereum, and the NEST output of each block is 400;
3) Decrease every 2,400,000 blocks (about 1 year), and the output of each block decreases to 80% of the original;
4) When the block reward is 40 NEST, it will not decrease.
Calculation of mining output per quote:
First, we need calculate the NEST mining reward quantity M contained in the block of the packaged quote transaction. If the height difference between the block and the previous block containing the quote transaction is K, then:
M = K * 320
This means that if there is no quotation mining order for a period of time, the first new mining will get all the NEST rewards that have not been mined before. In this way, miners can be incentivized to conduct continuous quotation mining and maintain the stability and security of the NEST oracle network.
Assuming that the sum of the quotation fees in the block is E, and the fee paid for a certain quotation is e, then the NEST mining quantity of the quotation is N:
N = (e / E) * M
Each quote NEST mining allocation:
A. Quoted miner: 80%
B. Guardian node: 15%
C. Developer team: 5% (Note: when the total amount of NEST Token mining reaches 2 billion, this part of the reward will be cancelled, and the proportion of miners will be 85%)
Let me introduce you to the NEST oracle quote tool:
Mobile: NEST DAPP (NEST quotation must-have APP) NEST DAPP Android version download address:
https://nestdapp.io/download/nest.html (browser open it )
NEST DAPP iOS version download address:
Open the App Store, log in to an AppleID account overseas or Hong Kong, China, Search: NEST DAPP
NEST DAPP website:
https://nestdapp.io/NEST prediction machine quote operation video B station:
https://www.bilibili.com/video/BV1MK411W7jk/PC: NEST quote script (GitHub open source tool)
Mining method: automatic mining
Download address:
https://github.com/NestFans/NestMiner Nest Token Release allocation Ratio
5% 15%
80%
Quoted miner Guardian node Developer team
Tutorial:
https://github.com/NestFans/NestMiner/blob/master/README.mdThe funds required to participate in the NEST oracle quote mining: 10 ETH + UDST assets worth
10 ETH.
4. How do NEST validators taker arbitrage?
If a quoted miner reports a quote that deviates from the market price, then the verifier can take arbitrage.
Suppose that the fund size of the quotation is: 10 ETH + 1200 USDT and the ETH price is 120 USDT;
At this moment, the ETH market price is: 1 ETH = 150 USDT;
Then, the arbitrage opportunity appears, the verifier operates:
Step 1: The verifier can transfer 1200 USDT to the quotation contract and exchange for 10 ETH;
Step 2: The verifier will report a new price, assuming 10 ETH + 1500 USDT;
Step 3: While taking the order, sell 10 ETH in the market to get 1500 USDT, so the final profit is: 300 USDT.
5. How can DEFI developers transfer NEST oracle price data?
NEST orcale price transfer developer documentation:
https://www.nestfans.com/wiki/nest_dev 6. NEST oracle price data transfer charging rules
ETH/USDT price prediction machine charging rules:
The NEST oracle provides block price sequences for downstream DEFI developers to call freely. The specific charging rules are as follows:
1) Single transfer price of each block 0.0001 ETH
2) The minimum payment fee for a single transfer is 0.001 ETH 3) The maximum payment fee for a single transfer is 0.01 ETH
ETH/USDT price oracle calls ETH income distribution:
1) NEST system revenue pool: 80%
2) Quoted miner: 20% (if there are multiple quotes in the same block price, it will be assigned to the last quoted address)
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